Section 12A Registration
Section 12A of the Income Tax Act, 1961, grants tax exemption to certain institutions and trusts established for charitable or religious purposes. To avail of this exemption, the institution or trust must obtain registration under Section 12A from the Income Tax Department.
Eligibility for 12A Registration
Institutions and trusts eligible for 12A registration include :-
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Charitable institutions: These include institutions engaged in activities such as providing relief to the poor, education, medical relief, and advancement of any of the objects of general public utility.
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Religious institutions: These include institutions that are primarily engaged in promoting religion, such as temples, mosques, churches, and gurudwaras.
Benefits of 12A Registration :-
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Tax exemption: Institutions with 12A registration are exempt from income tax on their income.
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Credibility: 12A registration enhances the credibility of the institution and instills trust among donors.
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Access to government benefits: 12A registration may make the institution eligible for government grants and subsidies.
Section 80G Registration
Section 80G of the Income Tax Act, 1961, allows donors to claim income tax deductions for donations made to certain charitable institutions or trusts. To enable donors to claim deductions, the institution or trust must obtain registration under Section 80G from the Income Tax Department.
Eligibility for 80G Registration
Institutions and trusts eligible for 80G registration include :-
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Charitable institutions: These include institutions engaged in activities such as providing relief to the poor, education, medical relief, and advancement of any of the objects of general public utility.
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Religious institutions: These include institutions that are primarily engaged in promoting religion, such as temples, mosques, churches, and gurudwaras.
Benefits of 80G Registration :-
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Tax benefits for donors: Donors can claim income tax deductions for donations made to institutions with 80G registration.
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Increased donations: 80G registration attracts more donations by making them tax-deductible.
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Enhanced reputation: 80G registration enhances the reputation of the institution and demonstrates its commitment to transparency and accountability.
